FY 2002 Amended Budget Submission
Defense Contract Management Agency (DCMA)
June 2001
DCMA - 1
DEFENSE CONTRACT MANAGEMENT AGENCY
Operation and Maintenance, Defense-Wide
FY 2002 Amended Budget Submission
Appropriation Highlights
($ in Thousands)
In March of 2000 the Defense Contract Management Command was named a separate Joint Combat
Support Agency and became the Defense Contract Management Agency (DCMA). As an agency, DCMA
transferred associated support resources from the Defense Logistics Agency beginning in late
FY 2000. As a result of this transition DCMA is now aligned under the Principal Under
Secretary of Defense (Acquisition, Technology and Logistics).
The critical requirements that justified establishing DCMA as a separate Agency included:
the combat support mission; the size, scope and complexity of the organization; comparable
organization placement with Senior Acquisition Executives; the need for independent
oversight; and the elimination of a management layer. The Agency’s role as a combat support
organization is the most important mission. DCMA’s combat support responsibilities include:
contingency and wartime planning with the CINCs; maintaining effective training and force
preparation for deployed operations such as Bosnia and Kosovo; deployment with military
forces to support contingency operations; support of joint exercises; and mobilizing defense
industry support of CINC operations.
The Defense Contract Management Agency's operation and maintenance appropriation consists of
the
following
activities:
Defense
Contract
Management
Districts
East,
West
and
International, the Defense Contract Management Agency Headquarters, the Business Support
Unit, Special Programs, and the Standard Procurement System (SPS) totaling $.95 billion and
11,921 full time equivalents.
DCMA provides contract management services throughout the
acquisition life cycle to include contractor compliance with contract terms; accepting
products; providing program and technical support; and ensuring that contractors are
paid. The Standard Procurement System is the new DoD-wide standard system that will replace
Service and Defense Logistics Agency legacy procurement systems.
DCMA - 2
DEFENSE CONTRACT MANAGEMENT AGENCY
Operation and Maintenance, Defense-Wide
FY 2002 Amended Budget Submission
Appropriation Highlights
($ in Thousands)
FY 2000
Actuals
Foreign
Currency
Variance
Price
Growth
Program
Growth
Foreign
FY 2001 Currency
Estimates Variance
Price
Growth
Program
Growth
FY 2002
Estimates
Budget
Activity 4:
Admin. & Serv.
Act.
963,921
31,699
-77,736
917,884
29,233
1,815
948,932
Total
963,921
31,699
-77,736
917,884
29,233
1,815
948,932
Budget Activity 4 reflects funding in support of the Contract Management Agency as well as
funding in support of the Standard Procurement System. The O&M appropriation funds the
contracts, supplies, equipment maintenance, communications, salaries, awards, personnel,
benefits, travel, per diem, and training in support of these programs. This budget
activity’s decreases are primarily attributable to decreases in the civilian personnel
workforce. Increases in this budget activity are associated with the Agency’s facility
support requirements and its equipment replacement initiatives.
Footnote: FY00 actual obligations reflected in this submission are included in the Defense Logistics Agency
FY00 base and are therefore also included in the DLA justification materials.
DCMA - 3
DEFENSE CONTRACT MANAGEMENT AGENCY
Operation and Maintenance, Defense-Wide
FY 2002 Amended Budget Submit
Summary of Increases and Decreases
SPS
DCMA
Total
1.
FY 2001 President's Budget
0
0
0
2.
Congressional Adjustments (Distributed)
Total Congressional Adjustments (Distributed)
0
0
0
Congressional Adjustments (Undistributed)
Total Congressional Adjustments (Undistributed)
0
0
0
Congressional Earmarks
Total Congressional Earmarks
0
0
0
5.
FY 2001 Appropriated Amount
0
0
0
6.
FY 2001 Recission
-2,036
0
-2,036
7.
Functional Transfers - In
Transfer of funding from the Defense Logistics Agency associated with the establishment
913,842
of
the Defense Contract Management Agency
Total Functional Transfers - In
913,842
11,843
925,685
11,843
925,685
3.
4.
8.
9.
Other Transfers - In (Non-Functional)
Total Other Transfers - In (Non-Functional)
0
0
Functional Transfers - Out
Total Functional Transfers - Out
0
10.
Other Functional Transfers Out
11.
Price Changes
0
0
0
12.
Program Increases
Total Program Increases
0
0
0
-5,765
-5,765
0
0
-5,765
-5,765
13.
Program Decreases
Reduction in civilian personnel funding to reflect a lower cost base
Total Program Decreases
DCMA - 4
DEFENSE CONTRACT MANAGEMENT AGENCY
Operation and Maintenance, Defense-Wide
FY 2002 Amended Budget Submit
Summary of Increases and Decreases
14.
FY 2001 Current Estimate
906,041
11,843
917,884
29,178
55
29,233
15.
Price Growth
16.
Functional Transfers - In
Total Functional Transfers - In
0
0
0
Functional Transfers - Out
Total Functional Transfers Out
0
0
0
0
367
156
167
0
4
694
3,878
367
156
167
2,356
4
6,928
0
0
-9
0
0
-9
-2,398
-7
-9
-2,095
-600
-5,109
17.
18.
19.
20.
Program Increases
a.
Stabilization of funding associated with PC replacment and non ADP equipment3,878
requirements
b. Increase in SPS product maintenance
0
c. Increase in DISA processing costs associated with SPS
0
d. Increase in maintenance associated with the Shared Data Warehouse
0
e. Increase in contracting costs associated with Command initiatives
2,356
f. Increase in estimated labor costs
0
Total Program Increases
6,234
Program Decreases
a. Decrease associated with FTE reductions and projected change in average annual
-2,398
rate
b. Decrease in Security Services projection to reflect actual funding level
-7
c. Decrease in other support costs
0
d. Decrease in mission travel funding for savings initiatives associated with PBD
-2,095
824
e. Decrease in mission travel funding for military and civilian pay raise (PBD 806)
-600
Total Program Decreases
-5,100
FY 2002 Budget Request
936,353
DCMA - 5
12,583
948,936
DEFENSE CONTRACT MANAGEMENT AGENCY
Operation and Maintenance, Defense-Wide
Fy 2002 Amended Budget Submission
PERSONNEL SUMMARY
Change
FY 00/FY 01
Change
FY 01/FY 02
FY 2000
FY 2001
FY 2002
Civilian End Strength (Total)
U.S. Direct Hire
Foreign National Direct Hire
Total Direct Hire
Foreign National Indirect Hire
(Reimbursable Civilians Included Above - Memo)
12,419
12,312
88
12,400
19
1,625
11,894
11,787
88
11,875
19
1,266
11,892
11,785
88
11,873
19
1,183
(525)
(525)
0
(525)
0
(359)
(2)
(2)
0
(2)
0
(83)
Civilian Full Time Equivalent (FTE) (Total)
U.S. Direct Hire
Foreign National Direct Hire
Total Direct Hire
Foreign National Indirect Hire
(Reimbursable Civilians Included Above - Memo)
12,367
12,260
88
12,348
19
1,625
12,099
11,992
88
12,080
19
1,266
11,921
11,814
88
11,902
19
1,183
(268)
(268)
0
(268)
0
(359)
(178)
(178)
0
(178)
0
(83)
Footnote: FY 00 actuals reflected in this submission are included in the Defense Logistics Agency FY 00 base.
DCMA - 6
DEFENSE CONTRACT MANAGEMENT AGENCY
Operation and Maintenance, Defense-Wide
FY 2002 Amended Budget Submission
Summary of Price and Program
(Dollars in Thousands)
Foreign
FY 2000
Currency
Price Growth
Program Rate Difference Percent Amount
Program
Growth
FY 2001
Program
101
103
104
105
106
111
199
CIVILIAN PERSONNEL COMPENSATION
Executive, General & Special Schedule
Wage Board
Foreign National Direct Hire (FNDH)
Separation Liability (FNDH)
Benefits to Former Employees
Disability Compensation
TOTAL CIVILIAN PERSONNEL COMPENSATION
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0.04
0.04
0.04
0.04
0.04
0.04
0
0
0
0
0
0
0
745,315
387
3,796
47
126
3,976
753,647
745,315
387
3,796
47
126
3,976
753,647
308
399
TRAVEL
Travel of Persons
TOTAL TRAVEL
0
0
0
0
0.02
0
0
32,711
32,711
32,711
32,711
499
SUPPLIES & MATERIALS PURCHASES
TOTAL SUPPLIES & MATERIALS PURCHASES
0
0
0
0
0
599
EQUIPMENT PURCHASES
TOTAL FUND EQUIPMENT PURCHASES
0
0
0
0
0
647
650
671
673
677
678
699
OTHER FUND PURCHASES (EXCLUDE TRANSPORTATION)
DISA Information Services
DLA Information Services
Communication Services (DISA) Tier 2
Defense Finance and Accounting Services
Communication Services (DISA) Tier 1
Defense Security Service
TOTAL PURCHASES
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-0.10
0.02
0.16
0.01
0.02
0.02
0
0
0
0
0
0
0
6,098
0
8,819
4,983
760
461
21,121
6,098
0
8,819
4,983
760
461
21,121
771
799
CIVILIAN PERSONNEL COMPENSATION (TRANSPORTATION)
Commercial Transportation
TOTAL TRANSPORTATION
0
0
0
0
0.02
0
0
3,028
3,028
3,028
3,028
Program
FY 2001
Footnote: FY00 actuals reflected in this submission are included in the Defense Logistics Agency FY00 base
DCMA - 7
FY 2000
Foreign
Currency
Price Growth
DEFENSE CONTRACT MANAGEMENT AGENCY
Operation and Maintenance, Defense-Wide
FY 2002 Amended Budget Submission
Summary of Price and Program
(Dollars in Thousands)
Program Rate Difference Percent
901
912
913
914
915
917
920
921
922
923
925
932
933
989
998
999
9999
OTHER PURCHASES
Foreign National Indirect Hire (FNIH)
Rental Payments to GSA (SLUC)
Purchased Utilities (non-Fund)
Purchased Communications (non-Fund)
Rents (non-GSA)
Postal Services (U.S.P.S.)
Supplies & Materials (non-Fund)
Printing and Reproduction
Equipment Maintenance by Contract
Facility Maintenance by Contract
Equipment Purchases (non-Fund)
Management & Professional Support Services
Studies, Analysis, & Evaluations
Other Contracts
Other Costs
TOTAL OTHER PURCHASES
TOTAL OPERATION & MAINTENANCE
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
DCMA - 8
0.04
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
Amount
Growth
Program
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
845
16,594
414
8,428
1,482
745
10,791
564
1,125
717
27,135
1,196
492
36,718
131
107,377
845
16,594
414
8,428
1,482
745
10,791
564
1,125
717
27,135
1,196
492
36,718
131
107,377
0
917,884
917,884
DEFENSE CONTRACT MANAGEMENT AGENCY
Operation and Maintenance, Defense-Wide
FY 2002 Amended Budget Submission
Summary of Price and Program
(Dollars in Thousands)
Foreign
Currency
Price Growth
Rate Difference Percent
Amount
FY 2001
Program
101
103
104
105
106
111
199
CIVILIAN PERSONNEL COMPENSATION
Executive, General & Special Schedule
Wage Board
Foreign National Direct Hire (FNDH)
Separation Liability (FNDH)
Benefits to Former Employees
Disability Compensation
TOTAL CIVILIAN PERSONNEL COMPENSATION
308
399
TRAVEL
Travel of Persons
TOTAL TRAVEL
499
Program
Growth
FY 2002
Program
745,315
387
3,796
47
126
3,976
753,647
0
0
0
0
0
0
0
0.04
0.04
0.04
0.04
0.00
0.00
27,017
14
138
2
0
0
27,171
(2,398)
0
0
0
0
0
(2,398)
769,934
401
3,934
49
126
3,976
778,420
32,711
32,711
0
0
0.02
524
524
(2,695)
(2,695)
30,540
30,540
SUPPLIES & MATERIALS PURCHASES
TOTAL SUPPLIES & MATERIAL PURCHASES
0
0
0
0
0
599
EQUIPMENT PURCHASES
TOTAL FUND EQUIPMENT PURCHASES
0
0
0
0
0
647
650
671
673
677
678
699
OTHER FUND PURCHASES (EXCLUDE TRANSPORTATION)
DISA Information Services
DLA Information Services
Communication Services (DISA) Tier 2
Defense Finance and Accounting Services
Communication Services (DISA) Tier 1
Defense Security Service
TOTAL PURCHASES
6,098
0
8,819
4,983
760
461
21,121
0
0
0
0
0
0
0
-0.06
0.00
0.00
0.05
0.00
0.00
771
799
CIVILIAN PERSONNEL COMPENSATION (TRANSPORTATION)
Commercial Transportation
TOTAL TRANSPORTATION
3,028
3,028
0
0
0.02
(969)
0
1,217
(234)
0
7
21
48
48
156
0
0
0
0
(7)
149
5,285
0
10,036
4,749
760
461
21,291
0
0
3,076
3,076
DCMA - 9
FY 2001
Foreign
Currency
Price Growth
Program
FY 2002
DEFENSE CONTRACT MANAGEMENT AGENCY
Operation and Maintenance, Defense-Wide
FY 2002 Amended Budget Submission
Summary of Price and Program
(Dollars in Thousands)
Program
901
912
913
914
915
917
920
921
922
923
925
932
933
989
998
999
9999
OTHER PURCHASES
Foreign National Indirect Hire (FNIH)
Rental Payments to GSA (SLUC)
Purchased Utilities (non-Fund)
Purchased Communications (non-Fund)
Rents (non-GSA)
Postal Services (U.S.P.S.)
Supplies & Materials (non-Fund)
Printing and Reproduction
Equipment Maintenance by Contract
Facility Maintenance by Contract
Equipment Purchases (non-Fund)
Management & Professional Support Services
Studies, Analysis, & Evaluations
Other Contracts
Other Costs
TOTAL OTHER PURCHASES
TOTAL OPERATION & MAINTENANCE
Rate Difference Percent
845
16,594
414
8,428
1,482
745
10,791
564
1,125
717
27,135
1,196
492
36,718
131
107,377
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
917,884
0
DCMA - 10
0.04
0.15
0.02
0.02
0.02
0.00
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
Amount
Growth
Program
31
0
7
135
24
12
172
9
18
11
434
19
8
587
2
1,469
0
0
0
0
0
0
0
0
167
0
4,245
0
0
2,347
0
6,759
876
16,594
421
8,563
1,506
757
10,963
573
1,310
728
31,814
1,215
500
39,652
133
115,605
29,233
1,815
948,932
DEFENSE CONTRACT MANAGEMENT AGENCY
Operation and Maintenance, Defense-Wide
Fiscal Year (FY) 2002 President’s Budget
Budget Activity 4: Contract Management
I.
Description of Operations Financed:
Contract Management Services (CMS):
In March of 2000 the Defense Contract Management Command was named a separate Joint Combat
Support Agency and became the Defense Contract Management Agency (DCMA). As an agency, DCMA
transferred associated support resources from the Defense Logistics Agency beginning in late
FY 2000. As a result of this transition DCMA is now aligned under the Principal Under
Secretary of Defense (Acquisition, Technology and Logistics).
The critical requirements that justified establishing DCMA as a separate Agency included:
the combat support mission; the size, scope and complexity of the organization; comparable
organization placement with Senior Acquisition Executives; the need for independent
oversight; and the elimination of a management layer. The Agency’s role as a combat support
organization is the most important mission. DCMA’s combat support responsibilities include:
contingency and wartime planning with the CINCs; maintaining effective training and force
preparation for deployed operations such as Bosnia and Kosovo; deployment with military
forces to support contingency operations; support of joint exercises; and mobilizing defense
industry support of CINC operations.
The Defense Contract Management Agency (DCMA) provides customer-focused contract management
services throughout the acquisition life cycle, around the clock, around the world. As DoD's
independent CMS agent, DCMA represents the interests of the Government with industry, thereby
protecting the rights of the Government, obtaining maximum value for taxpayers' dollars and
providing responsive support to the Military Departments as well as to civilian agency
customers. DCMA's major responsibilities are: ensuring contractor compliance with cost,
delivery, technical, quality and other terms of contracts assigned for administration;
accepting products and services on behalf of the Government; providing program and technical
support; and ensuring that contractors are paid. DCMA serves as DoD's information broker in
contractors' plants worldwide, providing the Military Departments and civilian agency
customers with invaluable insight in both preaward and postaward contract management.
DCMA - 11
DEFENSE CONTRACT MANAGEMENT AGENCY
Operation and Maintenance, Defense-Wide
Fiscal Year (FY) 2002 President’s Budget
Budget Activity 4: Contract Management
I.
Description of Operations Financed (con’t):
DCMA aims to be the provider of choice for contract management for the Department of Defense
and a valued customer to our suppliers. DCMA's strategic objectives include: providing the
right item at the right time for the right price, teaming with our business partners to
achieve customer results, accelerating acquisition excellence by applying commercial
processes and practices, leveraging information technology to improve business results,
investing to develop and sustain the right talent, and building and maintaining a positive
work environment.
The Defense Contract Management Agency (DCMA) has made major reductions in staffing between
FY 1991 and FY 2000. This budget continues that trend and reflects a reduction of 450 fulltime equivalents (FTEs) from FY 2000 to FY 2002. These reductions are possible through
efficiencies DCMA has achieved as a result of our activity-based management and risk
management efforts. These efforts allow DCMA to recognize and resource critical mission
increases, such as requirements resulting from the Space BAR, at the same time total
resources are reduced. This budget also reflects changes to the cost of labor driven by
locality pay increases and workforce demographics.
In FY 2001 funding associated with the transfer of DCMA reimbursed resources from DLA to DCMA
resulted in the realignment of funding from the labor object class to several nonlabor
categories. This adjustment has resulted in the shift of approximately $14M from the
corporate subactivity group to labor, travel, supplies, and other contracts. Also reflected
in the DCMA current estimate is the substantial reduction in reimbursable earnings from
FY 2000 to FY 2002 driven by decreases in Foreign Military Sales.
DCMA Initiatives:
To better support the nation’s warfighters, DCMA strives to continually improve efficiency
and effectiveness of its business processes. The use of Information Technology (IT) is a
DCMA - 12
DEFENSE CONTRACT MANAGEMENT AGENCY
Operation and Maintenance, Defense-Wide
Fiscal Year (FY) 2002 President’s Budget
Budget Activity 4: Contract Management
I.
Description of Operations Financed (con’t):
major component of DCMA’s success in this area. DCMA must provide the IT tools its workforce
require to perform their job and produce superior results.
Specifically, these efforts include applications that impact such vital DoD acquisition
business matters as Preaward Surveys of prospective contractors, contract price negotiation,
material acceptances, contractor payment, and workload assignments and management.
Visibility of key data and information at the team level supports performance based
management, allowing teams to self direct the application of limited resources to the
appropriate priorities.
Ultimately, DCMA’s customers, the Military Departments and Agencies, benefit from these
efforts because of increased access to information such as contractor delivery status,
manufacturing progress, quality assurance metrics, status of negotiations with contractors,
and faster and more accurate payments to contractors. DCMA customers will be better able to
anticipate contract performance difficulties and work with DCMA to resolve them before they
impact the war fighter.
The most significant change in the IT initiatives budget is the FY 2001 realignment of funds
from Operation and Maintenance (O&M) to Research, Development, Test and Evaluation (RDT&E)
and Procurement Defense-Wide (PDW). The realignment of funds was necessary to conform to
Information Technology (IT) budgeting policy language contained in the FY 2000 House
Appropriations Committee Report (106-244).
DCMA Infrastructure:
IT infrastructure is vital to DCMA's mission and successful implementation of its
initiatives. DCMA’s technical architecture defines the computing and communications
environment required to meet these goals. As new mission needs and business requirements are
identified, DCMA updates its technical architecture.
DCMA - 13
DEFENSE CONTRACT MANAGEMENT AGENCY
Operation and Maintenance, Defense-Wide
Fiscal Year (FY) 2002 President’s Budget
Budget Activity 4: Contract Management
I.
Description of Operations Financed (con’t):
IT Infrastructure covers the technical architecture (e.g., desktop computers, Local Area
Networks (LANs), LAN servers, operating systems, wide area telecommunications, and system
management utilities) needed to deploy, run, and productively use DoD-wide and DCMA-unique
mission software applications, the Defense Messaging System, office productivity applications
(e.g., Microsoft Office), and Knowledge Management and workgroup collaboration tools. As new
mission needs and business requirements are identified, DCMA updates its technical
architecture. An illustrative example of just such a technical architecture update is the
Agency’s migration from client/server applications and systems to Worldwide Web-based
applications supported by a DCMA Integrated Database/Data Mart. This change will allow us to
improve our Information Assurance capabilities, implement DoD’s mandated X.509 Public Key
Infrastructure (i.e., digital identification and signature certificates and tokens, with
secure data transmission protocols), support DoD’s Electronic Business/Electronic Commerce
initiatives, and successfully manage the transition mandated by Defense Reform Initiative
Directive (DRID) #53 from the legacy Mechanization of Contract Administration Services
(MOCAS) contract management and payment environment to the “To Be” Cross Functional
Procurement and Financial Management Process.
This update will also lower our database administration requirements, reduce our software
deployment and maintenance costs, increase our adaptability to rapidly changing business and
mission requirements, and dramatically reduce the time needed to field new functionalities.
Additionally, this update will allow us to better centrally manage our systems resources for
improved reliability and reduced maintenance expenses.
To keep up with the increases in computing power necessitated by successive new generations
of operating systems and Commercial-Off-The-Shelf (COTS) software, as well as to facilitate
our transition to Web-based applications and improved central system management, DCMA has
embarked on a program to replace one-third of its desktop personal computers and LAN servers
each year. This replacement cycle is completely in line with industry experience and
practice, where it has been found to dramatically lower maintenance costs, improve system and
DCMA - 14
DEFENSE CONTRACT MANAGEMENT AGENCY
Operation and Maintenance, Defense-Wide
Fiscal Year (FY) 2002 President’s Budget
Budget Activity 4: Contract Management
I.
Description of Operations Financed (con’t):
network reliability, and keeps up with increases in computing power required by new and
expanded software missions and functionalities. (Also, many IT systems components begin
routinely failing at the three year mark. By then, the replacements for the “failed” parts
often represent obsolete products or technologies—which has the perverse effect of raising
the replacements’ prices, since they are almost always out of production and therefore
relatively scarce. On the other hand, new systems usually feature three-year warranties,
parts and labor included.)
DLA Corporate Allocation:
The DLA was made up of six different business areas, one of which was the DCMA. In addition
to budgeting for the core mission, each business area must budgeted for an allocation of the
costs for DLA’s corporate organizations. The corporate organizations included the Office of
the Comptroller, Civilian Personnel, Administrative Support Center, and General Council. The
allocation of corporate costs was based on each business areas “earnings”. In the case of
DCMA, the Operations and Maintenance appropriation is considered the earnings. DCMA budgeted
for 6.3 percent of DLA’s corporate costs. Starting in late FY 2000, due to transfer of these
support FTEs from DLA to DCMA, DCMA will no longer reimburse DLA for these costs. These
costs will be encompassed within the CMS subactivity operating budget.
Contingency Operations:
Since 1993, DCMA has deployed over 400 people to efforts in Haiti, Rwanda, Bosnia, Kosovo,
and many other locations. DCMA oversees the Brown and Root Sustainment contract, which
provides base camp construction and maintenance in both Bosnia and Kosovo as well as
surrounding countries. This contract covers water, latrines, food services, laundry, base
camp maintenance, cargo and mail handling, power generation, waste management, and vehicle
maintenance. Contingency funding supports civilian overtime, TDY, and pre-deployment
training.
DCMA - 15
DEFENSE CONTRACT MANAGEMENT AGENCY
Operation and Maintenance, Defense-Wide
Fiscal Year (FY) 2002 President’s Budget
Budget Activity 4: Contract Management
I.
Description of Operations Financed (con’t):
Reimbursable Earnings:
DCMA performs Contract Management Services (CMS) on a reimbursable basis for non-DoD
customers. Most of this reimbursable work, including support of Foreign Military Sales
(FMS), the National Aeronautical Space Administration (NASA) and other civilian agency
customers, is billed monthly at a standard annual rate. Outside CONUS (OCONUS) reimbursable
work (limited in scope) is primarily reimbursed on an actual cost basis.
Contract Management Services (CMS) hours in support of FMS in the Continental United States
(CONUS) are computed based on an annual ratio of FMS contract disbursements to total contract
disbursements and account for 52 percent of the DCMA's reimbursable budget. In FY 1999 the
FMS annual ratio was 13.23 percent. The ratio decreased to 10.2 percent in FY 2000,
resulting in a decrease of approximately 400 personnel. In FY 2001, the approved FMS annual
ratio is 7.27 percent less and results in further decreases in FMS earnings of approximately
$28 million between FYs 2000 and 2001. We anticipate that the FMS annual ratio for FY 2002
will continue the declining trend, resulting in further significant decreases in FMS
earnings. The majority of the decrease in our FMS earnings tracks back to significant
reductions in FMS disbursements on FMS sales to Saudi Arabia.
DCMA hours worked in support of the National Aeronautical Space Administration (NASA) and
associated DCMC reimbursable earnings are expected to decrease in the FY 2002 budget year.
II. Force Structure Summary:
N/A
DCMA - 16
DEFENSE CONTRACT MANAGEMENT AGENCY
Operation and Maintenance, Defense-Wide
Fiscal Year (FY) 2002 President’s Budget
Budget Activity 4: Contract Management
Financial Summary (O&M:
$
in thousands):
FY 2001
A.
Subactivities:
1. Contract Management Services
Personnel Comp & Benefits
Voluntary Separation Incentive
Pay
PCS
Travel
Training
Information Svcs – DISA Tele
Communications
Information Svcs – DISA
Processing
Finance and Accounting
Services
2. Other Operating Support Costs
FY 2000
Actual
Budget
Current FY 2002
Request Appropriate Estimate Estimate
d
829,969
3,104
14,574
25,267
14,976
9,161
840,652
0
13,982
27,994
13,359
9,982
5,891
7,424
65,831
976,197
6,549
5,742
5,546
5,263
76,213
76,533
994,277 1,013,30
5
4,614
6,970
32,150
34,246
0
0
0
0
8,277
3. Subtotal
47,051
4. DCMC Initiatives
3,414
5. Infrastructure
22,415
Contingency Operations Support
DLA Corporate Allocation
DCMA - 17
857,861
0
14,103
28,544
13,504
11,755
DEFENSE CONTRACT MANAGEMENT AGENCY
Operation and Maintenance, Defense-Wide
Fiscal Year (FY) 2002 President’s Budget
Budget Activity 4: Contract Management
III.
Financial Summary (O&M:
$
in thousands)(con’t):
Total
Reimbursable Earnings
Operation and Maintenance
Total
Footnote:
.B.
)
)
)
)
)
)
)
)
)
)
)
1,057,354
163,561
893,793
1,031,041 1,054,52
1
125,000 118,172
906,041 936,349
FY00 actuals reflected in this submission are included in the Defense Logistics Agency FY00 base
Reconciliation Summary:
1. Baseline Funding
Congressional Adjustments (Distributed)
Congressional Adjustments (Undistributed)
Congressional Earmarks Billpayer
Adjustments to Meet Congressional Intent
2. Subtotal Appropriated Amount
FY 2001 Rescission
Approved Reprogrammings/Transfers
3. Price Change
4. Program Changes
5. Current Estimate
DCMA - 18
Change
FY 2001 /
FY 2001
Change
FY 2001/
FY 2002
0
906,041
0
-2,036
913,842
0
-5,765
906,041
906,041
0
0
29,178
1,130
936,349
DEFENSE CONTRACT MANAGEMENT AGENCY
Operation and Maintenance, Defense-Wide
Fiscal Year (FY) 2002 President’s Budget
Budget Activity 4: Contract Management
C. Reconciliation of Increases and Decreases:
($ in Thousands)
0
FY 2001 President’s Budget Request
1.
Congressional Adjustment (Distributed)
Total Congressional Adjustment (Distributed)
2.
Congressional Adjustment (Undistributed)
Total Congressional Adjustment (Undistributed)
3.
Congressional Adjustments (General Provisions)
Total Congressional Adjustments (General Provisions)
4.
Congressional Earmarks
Total Congressional Earmarks
FY 2001 Appropriated Amount (subtotal)
5.
FY 2001 Rescission
6.
Functional Transfers-In
Transfer of funding from the Defense Logistics
Agency associated with the establishment of the
Defense Contract Management Agency
Total Functional Transfers-In
7.
0
-2,036
Program Decreases
Reduction in civilian personnel funding due to the
Restructuring of the Agency’s workforce plan
Total Program Decreases
DCMA - 19
913,842
913,842
-5,765
-5,765
DEFENSE CONTRACT MANAGEMENT AGENCY
Operation and Maintenance, Defense-Wide
Fiscal Year (FY) 2002 President’s Budget
Budget Activity 4: Contract Management
C. Reconciliation of Increases and Decreases: (con’t)
FY 2001 Current Estimate
8.
Price Growth
9.
Program Increases
906,041
29,178
a.
Increase in purchased equipment to fully fund
the Agency’s equipment replacement
requirements
b. Increase in contracts associated with Command
initiatives
Total Program Increase
10.
Program Decreases
a. Reduction in civilian personnel funding
associated with FTE reductions and projected
changes in the average annual rate
b. Decrease security services to reflect actual
funding level
c. Decrease in mission travel funding
Total Program Decreases
FY 2002 Budget Request
3,878
2,356
6,234
-2,402
-7
-2,695
-5,104
936,349
DCMA - 20
DEFENSE CONTRACT MANAGEMENT AGENCY
Operation and Maintenance, Defense-Wide
Fiscal Year (FY) 2002 President’s Budget
Budget Activity 4: Contract Management
IV.
Performance Criteria and Evaluation Summary:
The Draft FY 2002 Performance Contract contains eight goals for the DCMA that are associated
with the Agency mission. The eight goals are as follows:
Cost Management – Reduce the cost per unit of output for contract administration by three
percent annually from the FY 1998 baseline through improvements in productivity. DCMA has
implemented a unit cost and activity-based management system. The forecast assumes stable
contract workload and no major changes in delegation of contract authority from the military
services.
Customer Responsiveness - Achieve a rating of five or greater, on a six point scale, on
90 percent of the responses on overall customer satisfaction. DCMA will conduct customer
surveys each month. Primary customers to be surveyed are Acquisition Category I, II and III
program managers, their respective Procurement Contracting Officers (PCOs), service logistics
and item managers, and their respective PCOs. Problems identified in the surveys will be
assessed for corrective action.
Contract Closeout - Improve the percentage of contracts closed out to eighty eight percent in
accordance with Federal Acquisition Regulation/Defense Federal Acquisition Regulation
Supplement goals. Much of the documentation required to close out contracts is provided by
other organizations (i.e., Defense Contract Audit Agency, Defense Finance and Accounting
Service, and program offices). To attain this goal, DCMA teams with these other
organizations to work systemic issues that would otherwise delay closeout.
Canceling Funds – Ensure that eighty eight percent of canceling funds to not cancel. DCMA
performs the canceling funds process to ensure that customers do not pay for prior
contractual obligations with funds drawn from current year’s obligations. To attain this
goal, DCMA teams with DFAS and the program offices to work systemic problems arising from
last minute adjustments.
DCMA - 21
DEFENSE CONTRACT MANAGEMENT AGENCY
Operation and Maintenance, Defense-Wide
Fiscal Year (FY) 2002 President’s Budget
Budget Activity 4: Contract Management
IV.
Performance Criteria and Evaluation Summary (con’t):
On-Time Delivery – Increase on-time deliveries by five percent per year. The baseline for
this is the on-time rate at the start of FY 2000. DCMA is successfully engaging all
customers in improving the entire end-to-end delivery management process.
DAWIA Certifications – Increase the personnel who are DAWIA certified to Level
percent and Level III to ninety-two percent. To achieve this DAU is providing
opportunities to DCMA employees at or above the FY 2000 levels. DCMA receives
from DAU at or above the FY 2000 levels to enable employee attendance at DAWIA
II to ninety
DAWIA course
travel funding
classes.
Training Hours Per Employee – Achieve a benchmark standard of 40 training hours per employee
per year.
Standard Procurement System (SPS) Transactions Tracking – Identify the number of actions
created, and dollars obligated using the SPS. DCMA relies on the Services as well as other
defense agencies to provide monthly data regarding SPS usage. DCMA assumes that the current
levels of responsiveness from these organizations will continue.
DCMA - 22
DEFENSE CONTRACT MANAGEMENT AGENCY
Operation and Maintenance, Defense-Wide
Fiscal Year (FY) 2002 President’s Budget
Budget Activity 4: Contract Management
FY 2000
FY 2001
FY 2002
Change
FY 2000/
FY 2001
Change
FY 2001/
FY 2002
Active Mil End Strength (Total)
Officer
Enlisted
626
529
97
626
529
97
625
528
97
0
0
0
-1
-1
0
Civilian End Strength (Total)
U.S. Direct Hire
Foreign National Direct Hire
Total Direct Hire
Foreign National Indirect Hire
(Reimbursable Civilians –Memo)
12,414
12,307
88
12,395
19
1,625
11,885
11,778
88
11,866
19
1,266
11,883
11,776
88
11,864
19
1,183
-529
-529
0
-529
0
-359
-2
-2
0
-2
0
-83
626
529
97
626
529
97
626
529
97
626
529
97
0
0
0
12,362
12,255
88
12,343
19
1,625
12,090
11,983
88
12,071
19
1,266
11,912
11,805
88
11,893
19
1,183
-272
-272
0
-272
0
-359
-178
-178
0
-178
0
-83
V.
Personnel Summary:
Active Mil FTEs (Total)
Officer
Enlisted
Civilian FTEs (Total)
U.S. Direct Hire
Foreign National Direct Hire
Total Direct Hire
Foreign National Indirect Hire
(Reimbursable Civilians –Memo)
Footnote:
FY00 actuals reflected in this submission are included in the Defense Logistics Agency FY00 base
DCMA - 23
DEFENSE CONTRACT MANAGEMENT AGENCY
Operation and Maintenance, Defense-Wide
Fiscal Year (FY) 2002 President’s Budget
Budget Activity 4: Contract Management
VI.
OP 32 Line Items (Dollars in Thousands):
FY 2000
Act
Executive, General &
Special Schedule
Wage Board
Foreign National Direct
Hire
Separation Liability
(FNDH)
Benefits to Former
Employees
Voluntary Separation
Incentive Pay
Disability Compensation
Total Civilian
Personnel Compensation
Travel Of Persons
Total Travel
DISA Information
Services
Communication Svcs
(DISA) Tier 2
Defense Finance &
Accounting Svcs
Change FY2000/2001
Change FY2001/2002
Price
Prog FY 2001 Price
Prog FY 2002
Growth Growth
Est
Growth Growth
Est
733,402
372
3,651
45
2
0
47
2
-2,402 768,775
0
401
0
3,934
0
49
1,055
0
-929
126
0
126
3,104
0 -3,104
0
0
0
0
4,038
0
3,976
0
0
3,976
745,667
29,153 -18,355 744,200 26,977
15
0
387
14
145
0
3,796
138
-62
29,315 -22,450 752,532 27,131
29,686
29,686
356
356
2,244
2,244
32,286
32,286
517
517
4,979
-314
538
5,203
-827
7,994
-32
857
8,819
1,217
6,479
317 -1,813
4,983
-234
DCMA - 24
-2,402 777,261
-2,695 30,108
-2,695 30,108
0
4,376
0 10,036
0
4,749
DEFENSE CONTRACT MANAGEMENT AGENCY
Operation and Maintenance, Defense-Wide
Fiscal Year (FY) 2002 President’s Budget
Budget Activity 4: Contract Management
VII. OP 32 Line Items (Dollars in Thousands) (Cont’d):
Communication Svcs
(DISA) Tier 1
Defense Security Svc
Total Purchases
Commercial
Transportation
Total Transportation
Foreign National
Indirect Hire (FNIH)
SLUC (GSA Leases)
Purchased Utilities
(non fund)
Purchased Communications
(non IF)
Rents and Leases
(non GSA)
Postal Service (U.S.P.S)
Supplies and Materials
(non SF)
Printing & Reproduction
Equipment Maintenance
Facility Maintenance
Equipment Purchases &
COTS
Change FY2000/2001
Change FY2001/2002
FY 2000
Price
Prog FY 2001 Price
Prog FY 2002
Act
Growth
Growth
Est
Growth Growth
Est
0
0
760
760
0
0
760
0
19,452
0
-29
461
803
461
20,226
7
163
2,735
33
260
3,028
48
0
3,076
2,735
33
260
3,028
48
0
3,076
813
13,789
32
0
0
2,805
845
16,594
31
0
0
876
0 16,594
389
5
20
414
7
0
421
8,353
100
-25
8,428
135
0
8,563
815
10
657
1,482
24
0
1,506
668
12,375
8
69
149 -1,759
745
10,765
12
172
0
757
0 10,937
382
847
686
26,882
5
177
10
68
8
23
323 -5,804
564
925
717
21,401
9
15
11
342
0
573
0
940
0
728
3,878 25,621
DCMA - 25
-7
461
-7 20,382
DEFENSE CONTRACT MANAGEMENT AGENCY
Operation and Maintenance, Defense-Wide
Fiscal Year (FY) 2002 President’s Budget
Budget Activity 4: Contract Management
VI.
OP 32 Line Items (Dollars in Thousands) (Cont’d):
FY 2000
Act
Mngt & Professional Svcs
Studies, Analysis, &
Evaluation
Other Contracts
Foreign Currency
Variance
Other Costs
Total Other Purchases
Total
Footnote:
Change FY2000/2001
Change FY2001/2002
Price Prog FY 2001 Price
Prog FY 2002
Growth Growth
Est Growth Growth
Est
904
676
11
8
-23
-192
892
492
14
8
28,632
344
4,598
33,574
537
2,356 36,467
0
0
0
0
1
88
131
2
1,014
702 97,969 1,319
30,689 -18,441 906,041 29,178
0
0
0
133
6,234 105,522
1,130 936,349
42
96,253
893,793
0
0
906
500
FY00 actuals reflected in this submission are included in the Defense Logistics Agency FY00 base
DCMA - 26
DEFENSE CONTRACT MANAGEMENT AGENCY
Operation and Maintenance, Defense-Wide
FY 2002 Amended Budget Submission
Budget Activity 4: Standard Procurement System
I. Description of Operations Financed:
The Standard Procurement System (SPS) program objective is deploying SPS to users in the
functional area of defense contracting. There are approximately 43,000 users at
approximately 1,100 sites worldwide, and the full operational capability threshold schedule
date is the end of fourth quarter FY 2003. The purpose of SPS is to standardize the
automated procurement functions across the Army, Navy, Air Force, Marine Corps, Defense
Logistics Agency, Defense Contract Management Agency, and the other Defense Agencies. Over
745 sites and 20,894 personal computers were installed with SPS as of December 31, 2000.
17,949 users are formally trained and 16,207 are Component declared operational users. SPS
provides Electronic Document Access and Electronic Data Interchange capabilities to meet
paperless contracting goals.
The Program Office is responsible for: installation of the product (Procurement Defense
Desktop (PD2)), licenses, training, enhancements to the Shared Data Warehouse (SDW),
interfaces to the financial and other legacy systems, data conversion, and enhancements to
the product to meet mission critical procurement functions.
The program decrease from FY 2000 to FY 2001 results from the realignment of funds from
Operation and Maintenance to Research, Development, Test and Evaluation (RDT&E) and
Procurement appropriations and the completion of most of the enhancement effort to the
product. The realignment was necessary to conform to recent Information Technology budgeting
policy. The decrease is also attributed to the completion of deployment to the base level
contracting procurement community in FY 2000. The program now focuses on completing the
remaining enhancements to fulfill weapon system and inventory control point procurement
capabilities and the deployments to those communities to achieve full operational capability
across DoD by end of FY 2003. In order to expand into these other DoD procurement
communities, interfaces and data conversions must be created and achieved to connect with
logistics and finance communities.
II.
Force Structure Summary:
N/A
DCMA - 27
DEFENSE CONTRACT MANAGEMENT AGENCY
Operation and Maintenance, Defense-Wide
FY 2002 Amended Budget Submission
Budget Activity 4: Standard Procurement System
III. Financial Summary (O&M:
$
in thousands):
FY 2001
A.
Subactivities:
1. Personnel Comp &
Benefits
2. Travel
3. Processing Charges
4. Supplies & Materials
5. Equipment Maintenance
6. Equipment Purchases &
Comm Off the Shelf
7. Software Dev. &
Maintenance
8. Software Conversion
9. Trng/Tstng/Studies &
Implementation
8. Other Operating
Support Costs
Total
Footnote:
FY 2000
Estimate
596
Budget
Request Appropriated
Current
Estimate
1,115
FY 2002
Estimate
1,159
412
789
110
163
425
895
26
200
432
909
26
370
11,186
27,416
5,734
1,272
6,193
1,293
7,667
0
0
21,393
1,677
1,701
397
498
499
70,128
11,843
12,583
FY00 actuals reflected in this submission are included in the Defense Logistics Agency FY00 base
DCMA - 28
DEFENSE CONTRACT MANAGEMENT AGENCY
Operation and Maintenance, Defense-Wide
FY 2002 Amended Budget Submission
Budget Activity 4: Standard Procurement System
.B.
)
)
)
)
)
)
)
)
)
)
Reconciliation Summary:
Change
FY 2001/2001
1. Baseline Funding
Congressional Adjustments (Distributed)
Congressional Adjustments (Undistributed)
Congressional Adjustments (General Provision)
Adjustments to Meet Congressional Intent
2. Subtotal Appropriated Amount
FY 2001 Rescission
Approved Reprogrammings/Transfers
4. Price Change
5. Program Changes
6. Current Estimate
Change
FY 2001/2002
0
11,843
0
11,843
11,843
11,843
55
685
12,583
C. Reconciliation of Increases and Decreases:
($ in Thousands)
FY 2001 President’s Budget Request
1. Congressional Adjustment (Distributed)
Total Congressional Adjustment (Distributed)
2.
Congressional Adjustment (Undistributed)
Total Congressional Adjustment (Undistributed)
3.
Congressional Adjustments (General Provisions)
Total Congressional Adjustments (General Provisions)
4.
Congressional Earmarks
Total Congressional Earmarks
FY 2001 Appropriated Amount (subtotal)
DCMA - 29
0
0
DEFENSE CONTRACT MANAGEMENT AGENCY
Operation and Maintenance, Defense-Wide
FY 2002 Amended Budget Submission
Budget Activity 4: Standard Procurement System
C. Reconciliation of Increases and Decreases: (con’t)
5. FY 2001 Rescission
6.
Functional Transfers-In
Transfer of funding from the Defense Logistics
Agency associated with the establishment of the
Defense Contract Management Agency
Total Functional Transfers-In
11,843
11,843
FY 2001 Current Estimate
11,843
2.
Price Change
3.
Program Increases
a. Adjustment to Paid Days
b. Increase in product maintenance
c. Increase in maintenance of the Shared Data
Warehouse
d. Increase in estimated DISA processing costs
Total Program Increases
4.
55
Program Decreases
Reduction in other support costs
Total Program Decreases
FY 2002 Budget Request
4
367
167
156
694
-9
-9
12,583
DCMA - 30
DEFENSE CONTRACT MANAGEMENT AGENCY
Operation and Maintenance, Defense-Wide
FY 2002 Amended Budget Submission
Budget Activity 4: Standard Procurement System
IV.
Performance Criteria and Evaluation Summary:
The SPS will prepare legacy procurement system users to operationally use SPS and enable
retirement decisions to be made for the 14 designated major legacy systems. The SPS funding
supports functional enhancement, installation, training, data conversion and interfaces to
procurement users at approved sites.
The PMO collects deployment metrics to manage performance and work load data in these major
categories: users, sites, and systems. The following table presents the performance
parameters identified in the SPS Acquisition Program Baseline. The values represent the
percent complete to Full Operational Capability (FOC).
FY
1999
2000
2001
2002
2003
Users
Sites
Systems
34%
42%
14%
48%
74%
29%
64%
87%
43%
88%
97%
64%
100%
100%
100%
With most sites reporting, from October 1999 through December 2000, SPS users have completed
400,000 contract awards/modifications totaling $45 billion.
DCMA - 31
DEFENSE CONTRACT MANAGEMENT AGENCY
Operation and Maintenance, Defense-Wide
FY 2002 Amended Budget Submission
Budget Activity 4: Standard Procurement System
FY 2000
FY 2001
FY 2002
Change
FY 2000/
FY 2001
Change
FY 2001/
FY 2002
Active Mil End Strength (Total)
Officer
Enlisted
0
0
0
0
0
Civilian End Strength (Total)
U.S. Direct Hire
5
5
9
9
9
9
4
4
0
Active Mil FTEs (Total)
Officer
Enlisted
0
0
0
0
0
Civilian FTEs (Total)
U.S. Direct Hire
5
5
9
9
9
9
4
4
0
V.
Personnel Summary:
Footnote:
FY00 actuals reflected in this submission are included in the Defense Logistics Agency FY00 base
DCMA - 32
DEFENSE CONTRACT MANAGEMENT AGENCY
Operation and Maintenance, Defense-Wide
FY 2002 Amended Budget Submission
Budget Activity 4: Standard Procurement System
VI.
OP 32 Line Items (Dollars in Thousands):
Change FY 2000/2001
Change FY 2001/2002
FY 2000 Price
Prog FY 2001 Price Prog FY 2002
Est
Growth Growth
Est Growth Growth
Est
101
103
199
Executive, General &
Special Schedule
Wage Board
Total Civilian
Personnel Compensation
596
0
24
0
495
0
1,115
0
40
0
4
0
1,159
0
596
24
495
1,115
40
4
1,159
308
399
Travel Of Persons
Total Travel
412
412
6
6
7
7
425
425
7
7
0
0
432
432
647
DISA Information
Services
Total Purchases
736
736
-46
-46
205
205
895
895
-142
-142
156
156
909
909
Supplies and Materials
(non SF)
110
2
-86
26
0
0
26
163
2
35
200
3
167
370
11,186
168
-5,620
5,734
92
367
6,193
359
5
-60
304
5
0
309
849 -54,271 3,144
1,026 -60,002 9,408
1,010 -59,295 11,843
50
150
55
-9
525
685
3,185
10,083
12,583
699
920
922
925
Equipment Maintenance
Equipment Purchases &
COTS
932
Mngt & Professional
Svcs
989 Other Contracts
999 Total Other Purchases
9999 Total
Footnote:
56,566
68,384
70,128
FY00 actuals reflected in this submission are included in the Defense Logistics Agency FY00 base
DCMA - 33